All Forum Posts by: Sean Haardt

thank you @Paul Khazansky, @Jeremy Hart, @Linda S.! I really appreciate the tips.

Hello BP Community,

Thanks to Josh, Brandon, and all you guys, I am closing on my first buy and hold for 89K in two weeks barring any unforeseen hurdles. I was trying to get an estimate of the monies I need to bring to closing but the preliminary HUD 1 doc with the closing cost estimates from the title company had several mistakes and was way, way off, seller's costs in buyer's column and more. So I was wondering if there is a guideline to estimate closing costs and is there any last minute thing to look out for at closing? I've heard a friend say he doesn't like any surprises at closing. How do I keep that from happening? Thanks BP.

Thank you so much @Chris T., @Christine Kankowski, @Andrew Johnson, and @Michael Evans. THis is a huge help.

I am hoping to get my first buy and hold property under contract by the end of the month. I feel comfortable estimating ARV but am too new to nail down the rehab costs. I have read J Scott's book, and it is a big help, but I need to avoid unforeseen issues that a rookie might miss. My idea was to bring in my inspector on showings to give a quick 30 min. walk-through estimate (he also does 203k inspections) on properties I am seriously considering and before I make an offer, and offer him to be a partner of sorts for my first few deals. I am also open to flipping if the numbers work out, but for the buy and holds, what could I offer him? a percentage of what? a flat fee of $1000 if I close and am cash flow positive? I want to do something that gives him a vested interest as well and will encourage him to help me on future property assessments, but don't want to break my bank in the process. Has anyone done something like this or have any advice? This is just for my first few homes until I feel comfortable on my own. Thanks BP community.

Thank you very much @Curtis Harvey. Appreciate your help and time. 

@Account Closed Hey I really appreciate it. Thanks Jerry. I'm new here. If I want to show my appreciation to someone like you who helps me out, does clicking on the "vote" button under your name do something?

I forgot to mention that these includes a 10% management fee, 7% vacancy, and 5% each for repairs and cap ex

I am a first time buy and hold investor and I've been waiting for this house to come on the market for over a month. It is a HUD home in a rural part of community that came on the market 2 days ago. I won't have too much competition, but don't want to lose the house to nickel and diming and underbidding an already good price. I just want to get in the game and the numbers suggest this is a good price even at full asking price. It is a 3 BR 1.5 bath with driveway. I won't have any problem renting it. The bank is asking 39000. It needs a new kitchen, a new bathroom, floors sanded and finished and some paint. Everything else in the house, basement, furnace, HVAC, is in good shape. Still to get it rent-ready and done right, I need to put in about 20K, probably less if I don't have any unexpected expenses (laugh now). ARV is at least 80K, probably more. The house is not open to investors for another 8 days which will be excruciatingly slow), but if it does not go to an owner-occupant, I am making an offer. Would really appreciate someone willing to look over my numbers before I blow it. Although I would prefer to get a commercial loan to BRRRR it in order to save up my fannie/freddies, the numbers don't seem to cash flow if I BRRRR it, but maybe I'm doing something wrong. I ran the numbers on a 15, 20 and 30 year fixed being pretty conservative using BP rental calculator. I'm willing to give up a little ROI to get in the game. Thanks for any advice you could offer. The numbers on a 15 year fixed are:

Income-Expense Ratio (2% Rule):

1.25%

Total Initial Equity:
$53,800.00

Typical Cap Rate:
9.00%

Gross Rent Multiplier:
3.94

Debt Coverage Ratio:
1.92

ARV based on Cap Rate:
$58,133.33

Thanks for any advice you could offer. 

Sean

@David Chwaszczewski I will get back to you with the answers to some of your Qs. I just didn't want to put too much in my initial post. Thanks again so much for taking the time to help a rookie.

Thank you so much @David Chwaszczewski and @Michael Henry for your time. That is a huge help. I'll let you know how it goes.